[THE INVESTOR] Stocks and bonds will no longer exist as paper forms in Korea starting from September, as the country moves to introduce an electronic securities system, the financial regulator said on Jan. 28.
Under the new enforcement ordinance to take effect on Sept. 16, the issuance, registration and circulation of securities will be made on an electronic basis without physical certificates, according to the Financial Services Commission.
Nearly all kinds of securities will be subject to the paperless system, the FSC said, adding that non-listed shares and investment contract securities will be the exceptions.
The new system is expected to beef up efficiencies in the local equity market and boost the country’s financial technology, according to the regulator.
The Korea Securities Depository Corp. is to be in charge of monitoring the overall process of electronic issuance and circulation, it noted.
By Ram Garikipati and newswires (firstname.lastname@example.org